Foot Locker-FL Q1 Loss Meets Estimates, Comparable Sales Decline 2.6% Y/Y

Core Insights - Foot Locker, Inc. reported first-quarter fiscal 2025 results with total revenues of $1,788 million, a decline of 4.6% year over year, missing the Zacks Consensus Estimate of$ 1,826 million [3][4] - The company posted an adjusted loss of seven cents per share, a significant decrease from adjusted earnings of 22 cents in the prior-year quarter [3] - Comparable sales fell by 2.6% year over year, with a notable 8.5% decline in international operations, particularly in Foot Locker Europe [4] Financial Performance - Gross profit was $514 million, down 5.5% year over year, while the gross margin rate increased by 40 basis points to 28.7% [5] - Selling, general and administrative (SG&A) costs decreased by 0.7% year over year to$ 458 million, but as a percentage of sales, it deleveraged by 100 basis points due to lower sales and technology investments [6] - Merchandise inventories stood at $1.67 billion, reflecting a 0.4% increase from the previous year [11] Strategic Initiatives - The company is executing its Lace Up Plan strategies and preparing for the completion of the DICK'S Sporting Goods transaction [1][8] - Focus during the quarter included rolling out the Reimagined and Refresh programs, enhancing digital offerings, and strengthening customer engagement through the FLX program [2] - Foot Locker opened nine new stores and closed 56 stores, while also remodeling or relocating 11 stores [7] Market Position - As of May 3, 2025, Foot Locker operated 2,363 stores across 20 countries, with an additional 236 licensed stores in the Middle East, Europe, and Asia [8] - The company ended the fiscal first quarter with cash and cash equivalents of$ 343 million and long-term debt of $440 million [11] - Over the past three months, Foot Locker shares gained 33.7%, outperforming the industry growth of 4.9% [11]